Maulana Azad Education Loan Scheme

The Maulana Azad Education Loan scheme, launched in 2003 by the Ministry of Minority Affairs, offers up to 7.5 lakhs for students from minority communities who wish to pursue higher education in India. This loan is provided under the 'Maulana Azad Shaikshanik Karz Yozana' at a 3% interest rate. 

Updated On - 05 Sep 2025

Education is crucial for the growth and development of both individuals and society. To address the financial challenges students face, the Government of India has introduced various schemes and programs to provide financial assistance. One such initiative is the Maulana Azad Education Loan.

Overview of the Maulana Azad Education Loan Scheme

Maulana Azad Education loan is offered to students who are going to pursue technical and professional courses in India. Here are the additional details of this scheme.

Details

Parameter

Loan Amount

Up to 7.5 lakhs (higher amount can be offered)

Expenses Covered

Study Costs

  1. Admission fee
  2. Tuition fee
  3. Expenses for study tours
  4. Examination fee
  5. Expenses for books, or laptop

Living expenses

  1. Food costs
  2. Accommodation or hostel cost
  3. Caution fee

Other Expenses

  1. Health insurance expenses
  2. Expenses for travel
  3. Miscellaneous expenses

Rate of Interest

3% p.a

Moratorium Period

Course duration + 6 months

Repayment Duration

5 years

Courses Eligible

Various types of courses such as post-graduation, graduation, diploma programs, Ph.D, and management courses offered by recognized educational institutions.

Collateral requirement

No Collateral Required

NOTE- Students are eligible to get loan amount of maximum of 5 lakhs if he/she is the only person in the family taking Maulana Azad Education Loan but if two students of the same family are applying under the same scheme then the loan amount increases to 7.5 Lakhs for both students combined.

Eligibility Criteria for Maulana Azad Education Loan

To be eligible for the Maulana Azad Education Loan Scheme, a candidate must fulfill the following criteria:

  1. The applicant must be from a minority group. This encompasses Muslims, Sikhs, Christians, Parsis, Buddhists, and Jains.
  2. The applicant should be a citizen of India and reside in Maharashtra.
  3. The age of the applicant should fall between 16 to 32 years.
  4. The applicant must be enrolled in an institution or college recognized/approved by the Central Government, State Government, AICTE, UGC, or ISC.
  5. The loan is available for a variety of courses, including technical and professional degrees such as B.E., B.Tech., B.Pharma., M.Pharma, M.Tech, MBA, and MCA, among others.
  6. The annual household income of the applicant's family should not exceed ₹2,50,000.
  7. Certain courses, like B.Ed, B.Com, B.A., B.Sc, and M.Sc, are not covered under this scheme.
Maulana Azad Loan

Documents Required for Maulana Azad Education Loan

The below listed documents are required for Maulana Azad Education Loan application:

For Candidates

1. KYC documents: Aadhaar Card, Pan card , and photocopies of Passbooks

2. Educational certificates: 10th, 12th, diploma, and graduation mark sheets/certificates

3. Minority certificate endorsed by the governing administration

4. Domicile certificate/proof of residency: Voter ID Card, Ration Card, Driving license, or Passport

5. Passport-size photographs

6. Original and verified admission letter from the college/university

7. Fee structure of the course term

8. Bonafide certificate from the most recently attended school, college, or university

9. Photocopy of the application form (available on the portal)

10. Copy of Freeship form showing admission category and scholarship details

11. NOC (No Objection Certificate) from your bank

12. For female applicants: A joint bank account with father, mother, or guardian

For Co-applicants/Parents/Guardians

1. KYC documents: Aadhaar Card, PAN Card

2. Proof of address: Driver's Licence, Ration Card, or Passport

3. Relationship certificate to justify the relationship with the co-applicant (e.g., birth certificate, passport)

4. Proof of income or profession

For Business Professionals

  1. Proof of business transactions for more than 1 year
  2. Proof of business number registered under the co-applicant's name
  3. Photocopy of the last 3-year balance sheet or profit and loss account
  4. Business address proof

For salaried employees

  1.  Income certificate
  1. Latest salary slip of at least 3 months
  1. Employer's ID card
  1. 3 years Income Tax Return (ITR) or Form 16 A

For Guarantors

1. KYC documents: Aadhaar Card, PAN Card

2. Proof of address: Driver's Licence, Ration Card, or Passport

3. Proof of Income Tax Return (ITR) for the last 3 years

4. Salary slip for more than 3 months

Guarantor Eligibility

1. Must be a government/private salaried employee or business/property holder

2. Age should not exceed 48 years

3. Must file an Income Tax Return (ITR) of at least 5 lakhs annually

4. In case of collateral pledging, the guarantor must be available to sign the loan documents

Benefits of the Maulana Azad Education Loan

The below listed are the benefits of Maulana Azad Education Lona:

  1. Students who belong to minority communities like Jains, Sikhs, Muslims, Christians, Buddhists and Parsis, and reside in Maharashtra can avail of a loan up to Rs.5 lakh from this foundation.
  2. The rate of interest for this loan is as low as 3% with a 5-year payback period.
  3. If you have applied for this scheme and availed yourself of a loan, then you will have to pay it back within six months of your graduation or once you find employment.
  4. Students applying for professional degree or diploma courses are eligible for the Maulana Azad Education Loan.

How to Apply for the Maulana Azad Education Loan

Apply for Maulana Azad Education Loan Online

Follow the steps given below to apply for the Maulana Azad Education Loan:

Step 1: Initiate the application by visiting the official website of Maulana Azad Minorities Financial Development Corporation Limited.

Step 2: Navigate to the 'Scheme' section located at the top right corner of the website.

Step 3: Choose 'Education Loan' from the list provided under the 'Scheme' section and select 'Maulana Azad Education Loan'.

Step 4: Click on the 'Online Application for Education Loan' section.

Step 5: A prompt or message will appear indicating whether you wish to continue with the application. Select "Yes" to move forward.

Step 6: Next, select the 'New Registration' option. Enter the required information and fields. Double-check the details you've entered and press "Register" to submit.

Step 7: Following registration, provide the necessary information such as submitting documents as requested. Once completed, submit your application for the loan scheme.

Repayment of Maulana Azad Education Loan

Six months following the completion of the program, the participants can begin to settle their debts. During this interim period, students can focus on securing employment or building their professional lives before they start repaying the loan. The Maulana Azad Education Loan's repayment rules are designed to be accommodating for students, and they operate under the following guidelines:

  1. Debt repayment commences six months after the end of the course
  2. The entire repayment period is set at five years
  3. In contrast to standard EMI schedules, payments for the loan are required every quarter

Disbursement Process for Maulana Azad Education Loan

Follow the steps given below to get the Maulana Azad Education Loan disbursed:

First off, you need to turn in three official documents. These include:

  1. A signed and notarized agreement authorized by you, your co-applicant, and guarantor under Maulana Azad Minorities Financial Development Corporation Ltd
  2. A signed and notarized promise note
  3. A stamp of ₹100 on the guaranteed letter by the guarantor

Additionally, you must sign twenty bank checks. These should be addressed to Maulana Azad Minorities Financial Development Corporation Ltd. For female applicants, both parties involved in the joint account must sign the checks.

You are also required to fill out a self-declaration form promising that you will not close the bank account designated for receiving the loan amount. You will receive the loan amount as planned.

FAQs on Maulana Azad Education Loan Scheme

  • Can degree students apply for the Maulana Azad Education Loan?

    Yes, degree students can apply for the Maulana Azad Education Loan.

  • What is the process to get selected for the Maulana Azad Education Loan?

    In order to get selected for the Maulana Azad Education loan, you must qualify for during the evaluation process. The selection procedure involves assessing your academic record, financial and economic history, and individual interviews. Should you satisfy all the necessary requirements and demonstrate outstanding performance throughout the selection procedure, you will be deemed eligible for the scholarship.

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